Liberty Global reports second-quarter 2008 results
August 6, 2008
ENGLEWOOD, Colo. -- Liberty Global, Inc. (“Liberty Global,” “LGI,” or the “Company”) (NASDAQ:LBTYA - News) (NASDAQ:LBTYB - News) (NASDAQ:LBTYK - News), today announces financial and operating results for the second quarter (“Q2”) ended June 30, 2008. Highlights for the quarter compared to the results for the same period last year (unless noted), include:
Revenue increased 25% to $2.73 billion
Operating Cash Flow (“OCF”)1 increased 34% to $1.15 billion
OCF margin2 expanded to 42.3% in Q2, a 280 basis point improvement
Organic telephony and broadband internet adds totaled 320,000, in-line with Q2 ‘07
Total organic RGU3 additions of 249,000 in Q2
Net earnings of $428 million as compared to a loss in Q2 ‘07
Free Cash Flow (“FCF”)4 improved to $318 million from $42 million in Q2 ‘07
Repurchased $1.6 billion of equity YTD, resulting in a 12% decrease in shares outstanding this year, and a reduction of approximately 35% over the last three years
President and CEO Mike Fries said, “Our results reflect a number of positive trends but also the continuation of certain operational challenges, particularly in some of our European markets. For the first six months of 2008, we achieved rebased5 revenue and OCF growth rates of 6% and 14%, respectively. Our OCF growth for the period was consistent with our expectation, however, our revenue growth was below forecast. We are actively working on certain competitive challenges, particularly in Austria, Hungary and Romania. Excluding those markets, our year-to-date rebased revenue and OCF growth would have improved to over 7% and 16%, respectively. Recent operational initiatives are expected to show positive effects over the coming quarters. On the back of UPC Broadband’s (“UPC”) increased digital cable revenue and consistent levels of voice and data additions, we are seeing signs of revenue stabilization at UPC. Despite these positive developments, we believe it is prudent to lower our 2008 financial targets by 1%, resulting in guidance for full year rebased revenue growth of 6-8% and rebased OCF growth of 13-15%.”
Liberty Global Inc. (Nasdaq: LBTY)
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